2 Kinds of Group Health Insurance Plans
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Indemnity Plans, also known as traditional indemnity or FFS (fee-for-service), gives a wider range of doctors- which include specialists like doctors and surgeons, hospitals and other health care providers. However, you have bigger cash out costs since this is FFS or fee-for-service, you will have to shoulder the expense first then request reimbursement from the insurance provider at a later date.
In this aspect, it is wise to be sure that your insurance provider always makes timely reimbursement. Most indemnity plan insurance companies have a set time frame in reimbursements which could be one to two weeks after the hospitalization period or after the service was performed. Indemnity plans also mean more paperwork – meaning it is up to the insured to prepare all the documents necessary for reimbursement. This is one of the reasons why the popularity of indemnity plans have waned over the years. Managed-Care Plans on the other hand have group of accredited doctors and health care providers who will render service to the insured at pre agreed prices to lessen the out-of-pocket costs and they normally require less paper work because it is the health professional who performed the service who will forward the claim to the insurance provider.
November 27 2008 03:21 am | General Info